Sheik buys Tussauds waxworks, fun parks

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Sheik Mohammed al-Maktoum, the crown prince of Dubai, has
acquired the British Tussauds theme park group, which includes
Alton Towers and Thorpe Park as well as the famous waxwork
galleries, for £800 million ($1.9 billion).

Sheik Mohammed's emirate state has recently opened the first
stage of Dubailand, a Middle Eastern theme park which will be twice
the size of Disneyland.

He also owns the Godolphin horse stables in England.

Sameer Al Ansari, chief executive of state-owned Dubai
International Capital, said the Tussauds' management team would be
consulted on further developments at the site, though no decision
had been taken on whether or not to introduce the waxwork galleries
to the Arab emirate.

The acquisition is also part of the Sheik's program to diversify
state assets and comes three months after a $US1 billion ($1.3
billion) investment in US car maker DaimlerChrysler. DIC plans to
make 60 per cent of future investments in North America and Europe,
with the remainder in the Middle East and Asia.

Tussauds Group attractions, which include Chessington World of
Adventures, Madame Tussauds and Heide Park in north Germany,
attract 14 million visitors a year, making it Europe's largest
theme park group. It also owns a third share in the London Eye
ferris wheel.

The previous owners, private equity group Charterhouse, expanded
the Madame Tussauds brand overseas, opening branches in Las Vegas,
New York and Hong Kong. It has focused on keeping collections up to
date with fast-moving celebrity trends, ditching some historical
figures in favour of pop stars such as Kylie Minogue.

In 2003, it unveiled a Britney Spears wax dummy complete with a
chest heaving in time to her music.

Charterhouse had been in talks with two potential financial
buyers in 2003, but they were unable to agree on a price for the
business acquired from Pearson four years earlier for £352
million. Plans to float Tussauds also came to nothing.

Tussauds chief executive Peter Phillipson claimed reports that
Charterhouse had two years ago been seeking a price of £900
million were exaggerated. Under Charterhouse's ownership, some 70
Tussauds executives shared a stake in the business valued on the
DIC deal at £30 million.

Mr Phillipson, who will continue to run the business, declined
to say whether the stake had been raised or sold down. However,
three senior executives, including Mr Phillipson, have pledged to
invest half of their earnings back into an equity stake.

Charterhouse refused to say how much it had realised from the
Tussauds deal.